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- MSP Rajya Sabha | Narendra Singh Tomar Says Govt Will Announce Committee On MSP After Election
New Delhi19 minutes ago
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The Government of India has said that a committee will be constituted to decide the MSP. This committee will be prepared after the assembly elections. Regarding this, Agriculture Minister Narendra Singh Tomar said in the Rajya Sabha that the government would constitute a committee to decide the MSP after the assembly elections. Members of farmers’ unions, scientists, experts and other stakeholders will be part of it. After the election, the process of formation of this committee will be completed. The central government had repealed all three agricultural laws, after which the farmers were adamant on the demand for MSP.
Paid double the price on MSP for last 7 years: Tomar
Narendra Singh Tomar said in Rajya Sabha that before 2018-19 there was no such provision to make MSP beneficial for farmers. Among the recommendations of the Swaminathan Committee, there were 14-15 recommendations which the GoM did not find suitable. There was also a recommendation that 50% of the profits should be declared on the MSP, this was not considered. The Prime Minister accepted this in 2018-19 and the MSP is now increasing. For the last 7 years, double the price has already been given on MSP. In the budget also, there is a provision of giving 2 lakh 37 thousand crore rupees to the farmers for remunerative price.
What is MSP after all?
MSP means Minimum Support Price or Minimum Support Price. The central government fixes a minimum price for the crops, this is called the MSP. Even if the price of the crop decreases in the market, the government will pay the farmer according to the MSP. With this, the farmers get to know about the fixed price of their crop, how much is the price of their crop. This is a kind of guarantee of the price of the crop.
Who decides the MSP?
The MSP of crops is decided by the Commission for Agricultural Costs and Prices (CACP). The commission sends its suggestions to the government by fixing the minimum price of crops on the basis of cost of cultivation and other parameters over time.
How is MSP decided?
There are 3 different variables used to calculate MSP. This includes A2, A2+FL and C2.
- A2 counts the expenses that the farmer pays out of his own pocket. Such as expenditure on fertilizer, seed, electricity, water and wages. It is also called input cost. Broadly speaking, it covers the cost of sowing till harvesting.
- In A2+FL, family labor is also included with all the expenses from sowing to harvesting. Family labor means the wages of the family members of the farmer for the work done in agriculture. If the farmer got the work done by the laborers, then they would have to pay wages. Similarly, if the members of the household are also working in the field, then they should also be given wages.
- C2 includes the cost of sowing to harvesting as well as the rent of the land and interest thereon. Along with this, the interest of the capital which the farmer has invested on the purchase of the machine is also included in this. Broadly speaking, in addition to the cost of farming, the interest on land and capital is also decided.
On which crops do farmers get MSP?
- The government gives MSP on cereals, pulses, oilseeds and other crops.
- Cereal crops: Paddy, Wheat, Bajra, Maize, Jowar, Ragi, Barley.
- Pulses Crops: Gram, Arhar, Moong, Urad, Lentil.
- Oilseed crops: Moong, soybean, mustard, sunflower, sesame, Niger or black sesame, safflower.
- Other crops: Sugarcane, cotton, jute, coconut.
On what basis does the government currently give MSP?
- At present, the government is giving MSP on the basis of A2+FL formula.
What is the demand of farmers on MSP?
- Farmers are demanding that they should be given MSP on C2+FL formula.
- The demand of the farmers is that the government should declare the purchase of crops at a price less than the MSP as a crime and the government procurement should be applicable on the MSP.
- Along with this, other crops should also be brought under the purview of MSP. However, many ministers of the central government and the Prime Minister himself have also said that the system of MSP will continue, but farmers’ organizations want this thing to be included in the law.
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